Once it is calculated the nav is simply the net value

The most important part of the calculation is the valuation of the assets owned by the fund. Once it is
calculated, the NAV is simply the net value of the assets divided by the number of units outstanding. The
detailed methodology for the calculation of the asset value is given below.
Asset value is equal to Sum of market value of shares / debentures
+Liquid assets / cash held, if any
+Dividends /interest accrued
Amount due on unpaid assets
Expenses accrued but not paid
Details on the above items
For liquid shares /debentures, valuation is done on the basis of the last or closing market price on the
principal exchange where the security is traded.
For illiquid and unlisted and /or thinly traded shares /debentures, the value has to be estimated. For shares
this could be the book value per share or an estimated, market price if suitable bench marks are available.
For the debentures and bonds, value is estimated on the basis of yields of comparable liquid securities after
adjusting for liquidity. The value of fixed interest bearing securities moves in a direction opposite to the
interest rate changes valuation of debentures and bonds is a big problem since most of them unlisted and
thinly traded. This gives considerable leeway to the AMCs on valuation and some of the AMCs are
believed to take advantage of this and adopt flexible valuation policies depending on the situation.
Interest is payable on debentures /bonds on a periodic basis say every 6 months. But with every passing
day, interest is said to be accrued at the daily interest rate, which is calculated by dividing the periodic
interest payment with the number of days in each period. Thus, accrued interest on a particular day is equal
to the daily interest rate multiplied by the number of days since the last interest payment date.
Usually, dividends are proposed at the time of the Annual General meeting and become due and the record
date. There is gap between the dates on which it becomes due and the actual payment date. In the

intermediate period it is deemed to be “accrued”.Expenses including management fees, custody charges
etc. are calculated on a daily basis.
COMPANY PROFILE
THE NETWORTH STORY
Ever since its inception in 1993, Networth Stock Broking Limited (NSBL) has sought to provide premium
financial services and information, so that the power of investment is vested with the client. We equip those
who invest with us to make intelligent investment decisions, providing them with the flexibility to either
tap into our extensive knowledge and expertise, or make their own decisions,NSBL made its debut into the
financial world by servicing Institutional clients and proved its high scalability of operations by growing

exponentially over a short period of time. Now, powered by a top-notch research team and a network of
experts, we provide an array of retail broking services spanning entire India.